In Upside-Down U.S. Car Market, MSRPs Have a Whole New Meaning

  • Automakers have pivoted to selling higher-priced models
  • Dealers add their own hikes on top of manufacturer increases
By
David Welch

March 25, 2022, 4:31 AM PDT

For decades, transactions in U.S. car dealerships went something like this: A couple walks into a showroom, expresses interest in buying a sedan, the sales rep says, great, our MSRP is $26,000, and the two sides sit down to negotiate the price lower until they settle on a level both can accept.

The MSRP, or sticker price, typically set the ceiling.

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